SET-listed Dexon Technology, a Thai pipeline inspection company, is expanding business overseas to increase revenue, with the latest plan to provide services to prospective customers in Latin America.
Seeking a new market will help the company reduce risk caused by overdependence on a single source of revenue in the domestic market, said chief executive Malika Kaekla.
"We are setting up a new firm to offer pipeline inspection services and non-destructive examination in Chile and other Latin American countries," she said.
Non-destructive examination is an essential part of the maintenance service to ensure the structural integrity and operational safety of oil and gas production rigs.
The new firm, Dexon Technology Chile SpA, will be established through Dexon Technology's wholly-owned subsidiary Dexon Technology USA Inc.
The establishment is scheduled to be complete by March 2025.
Growing a new customer base in Latin America is part of Dexon Technology's plan to increase revenue by 20% in 2025, up from estimated earnings of 704 million baht in 2024.
The revenue growth will also be driven by a contract made with PTT Exploration and Production Plc on general non-destructive examination for offshore oil and gas production rigs in petroleum fields, namely the G1, G2 and Arthit blocks in the Gulf of Thailand.
The contract lasts for three years and three months, starting from October 2024.
Dexon Technology will earn roughly 300 million baht from this assignment.
The company said earlier it expects revenue in 2024 to grow by 8.5% to 704 million baht, driven mainly by earnings from a backlog of services.
Up to 88% of revenue from these services has already been earned, so it should not be difficult for the company to rack up more during the rest of the year.
Most of the backlog is for services provided domestically.